Article Indicating the Locations with the Greatest Rent Increases

[Jerry Padilla]

I was surprised to see such a large increase in rents in low cost area's like Kansas City, Charlotte, and Atlanta. Do you think this is an indication that these locations are a great place to invest or will these great increases in rent, in turn cause higher demand for renters to purchase? Do you think this an indication that property value's will go up? It looks like Sacremento CA may be one of the most affordable places to rent or live in CA.

Quoted from the article; 

"Oakland, Calif. (up 23% year over year to $2,030), Sacramento, Calif. (up 21% to $970) and Jacksonville, Fla. (up 16% to $870), Kansas City, Mo. (up 15% to $770), Fresno, Calif. (up nearly 17% to $770), Austin, Texas (up 12% to $1,120) Denver (up 11% to $1,280), Atlanta (up nearly 11% to $1,250) and Charlotte, N.C. (also up 11% to $980 per month)." 

Read: Most renters are not ready (or willing) to buy 

[Alex Franks]

Originally posted by @Jerry Padilla:

I was surprised to see such a large increase in rents in low cost area's like Kansas City, Charlotte, and Atlanta. Do you think this is an indication that these locations are a great place to invest or will these great increases in rent, in turn cause higher demand for renters to purchase? Do you think this an indication that property value's will go up? It looks like Sacremento CA may be one of the most affordable places to rent or live in CA.

Quoted from the article; 

"Oakland, Calif. (up 23% year over year to $2,030), Sacramento, Calif. (up 21% to $970) and Jacksonville, Fla. (up 16% to $870), Kansas City, Mo. (up 15% to $770), Fresno, Calif. (up nearly 17% to $770), Austin, Texas (up 12% to $1,120) Denver (up 11% to $1,280), Atlanta (up nearly 11% to $1,250) and Charlotte, N.C. (also up 11% to $980 per month)." 

Read: Most renters are not ready (or willing) to buy 

 I'm in charlotte NC. I might be way off here. The retail market is great.  So we are seeing some renters turned buyers. I am afraid we are pushing rental prices to high. If we keep it up, were going to have more time releasing  empty properties( that renters cant afford ).  I rather have some on pay less , and keeping  them long term with out raising rents. I know I am not the norm here. I think we are creating a mess out there. Rental %  versus income not adding up. 

I see area's in Rock Hill SC, and Charlotte where investors are paying to much for the turn key assets. Then the manager setting rents to high. It just not going to work out in the long run. At the same time I am speaking from experience. I flipped over 250 of these type deals from 2010 to 2013 here in Charlotte and around the area. I own rentals here in charlotte matter of fact. 2013 my rentals still have the same price today as then. I have some from 2010 that if they were released rent would be FMR. So very little turn over. I self manage ours.

Some areas of Charlotte, I see appreciation. In those areas good retail sales happening . On the other hand, I see pockets of Charlotte where the values are flat. We are creating rental pockets. We all know if the majority of the area is rentals. Values will not go up or will be not true values. These are unusually recycled products through turn key flips which help push up the values.

Compared to Ny, SC and NC very reasonable to live. So with  influx of new buyers prices seems to keep going up. I just think we are creating a problem down the road.

I'm sure I did not answer you question with out creating a few more questions.

Alex